$NWRKF
CanniMed Therapeutics Inc. (TSX: CMED) ("CanniMed"
and Up Cannabis Inc. (wholly-owned licensed producer of Newstrike Resources Ltd. TSX-V: HIP) ("Up Cannabis" are pleased to announce that they have entered into a definitive Supply Agreement for a variety of medical cannabis strains. Among other things, the Supply Agreement will provide the raw material (whole bud material) required to meet the surging domestic and international demand for CanniMed oils and oil derivative products, including capsules. The two companies will also collaborate on a THC-rich, whole dried flower, medical cannabis product, demanded by patients.
This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180102005162/en/
Up Cannabis' supply commitment under the agreement will be filled by a combination of its existing inventory of 970 kg of finished cannabis product together with ongoing production at its Brantford facility of the two cannabis strains commencing in early January 2018. Under the terms of the supply agreement, Up Cannabis will produce and make available to CanniMed up to 1,500 kg of cannabis, conditional on Up Cannabis receiving an amendment to its license to permit the sales of cannabis. The term of the agreement is 15 months, subject to renewal by the parties.
This agreement is just one example of the type of value-added synergies existing between the two companies, which when combined will create enormous benefit for shareholders, patients and, on the opening of the recreational adult-use market, Canadian consumers. It is anticipated over the course of this initial supply agreement, the contract could contribute roughly $15 million in revenue to CanniMed from oil sales, based on current market pricing of medical cannabis products.
"This is the first of many anticipated synergies between CanniMed and Up Cannabis, and demonstrates the accretive combined value of the two companies. With sales of CanniMed(R) 1:20 oil surging, this supply agreement allows continued growth to meet increasing demand for our medical cannabis products domestically and internationally," said Brent Zettl, President and CEO, CanniMed. "Access to consistent supply is the key differentiator in today's fast-growing medical cannabis market. Between CanniMed's expanding facilities in Saskatoon and Up Cannabis' Ontario operations we can supply both the medical and recreational market, with a projected 2019 combined production capacity of 45,000kg."
Jay Wilgar, President and CEO of Up Cannabis, stated: "This supply agreement will allow us to officially begin sales of medical cannabis products under the CanniMed brand and collaborate on the development of new products for the medical market. Together with the CanniMed acquisition, this will position our collective team as a clear market leader. We are excited to embark further on our partnership together and to leverage our growing capabilities in Brantford and Niagara for our combined interests."
About CanniMed Therapeutics Inc.
CanniMed is a Canadian-based, international plant biopharmaceutical company and a leader in the Canadian medical cannabis industry, with 17 years of pharmaceutical cannabis cultivation experience, state-of-the-art, GMP-compliant production process and world class research and development platforms with a wide range of pharmaceutical-grade cannabis products. In addition, the Company has an active plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications.
CanniMed, through its subsidiaries, was the first producer to be licensed under the Marihuana for Medical Purposes Regulations, the predecessor to the current Access to Cannabis for Medical Purposes Regulations. It was the sole supplier to Health Canada under the former medical cannabis system for 13 years, and has been producing safe and consistent medical cannabis for thousands of Canadian patients, with no incident of product diversion or recalls.
For more information, please visit our websites: www.cannimed.ca (patients) and www.cannimedtherapeutics.com (investors).
CanniMed Therapeutics Inc. (TSX: CMED) ("CanniMed"
and Up Cannabis Inc. (wholly-owned licensed producer of Newstrike Resources Ltd. TSX-V: HIP) ("Up Cannabis" are pleased to announce that they have entered into a definitive Supply Agreement for a variety of medical cannabis strains. Among other things, the Supply Agreement will provide the raw material (whole bud material) required to meet the surging domestic and international demand for CanniMed oils and oil derivative products, including capsules. The two companies will also collaborate on a THC-rich, whole dried flower, medical cannabis product, demanded by patients. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180102005162/en/
Up Cannabis' supply commitment under the agreement will be filled by a combination of its existing inventory of 970 kg of finished cannabis product together with ongoing production at its Brantford facility of the two cannabis strains commencing in early January 2018. Under the terms of the supply agreement, Up Cannabis will produce and make available to CanniMed up to 1,500 kg of cannabis, conditional on Up Cannabis receiving an amendment to its license to permit the sales of cannabis. The term of the agreement is 15 months, subject to renewal by the parties.
This agreement is just one example of the type of value-added synergies existing between the two companies, which when combined will create enormous benefit for shareholders, patients and, on the opening of the recreational adult-use market, Canadian consumers. It is anticipated over the course of this initial supply agreement, the contract could contribute roughly $15 million in revenue to CanniMed from oil sales, based on current market pricing of medical cannabis products.
"This is the first of many anticipated synergies between CanniMed and Up Cannabis, and demonstrates the accretive combined value of the two companies. With sales of CanniMed(R) 1:20 oil surging, this supply agreement allows continued growth to meet increasing demand for our medical cannabis products domestically and internationally," said Brent Zettl, President and CEO, CanniMed. "Access to consistent supply is the key differentiator in today's fast-growing medical cannabis market. Between CanniMed's expanding facilities in Saskatoon and Up Cannabis' Ontario operations we can supply both the medical and recreational market, with a projected 2019 combined production capacity of 45,000kg."
Jay Wilgar, President and CEO of Up Cannabis, stated: "This supply agreement will allow us to officially begin sales of medical cannabis products under the CanniMed brand and collaborate on the development of new products for the medical market. Together with the CanniMed acquisition, this will position our collective team as a clear market leader. We are excited to embark further on our partnership together and to leverage our growing capabilities in Brantford and Niagara for our combined interests."
About CanniMed Therapeutics Inc.
CanniMed is a Canadian-based, international plant biopharmaceutical company and a leader in the Canadian medical cannabis industry, with 17 years of pharmaceutical cannabis cultivation experience, state-of-the-art, GMP-compliant production process and world class research and development platforms with a wide range of pharmaceutical-grade cannabis products. In addition, the Company has an active plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications.
CanniMed, through its subsidiaries, was the first producer to be licensed under the Marihuana for Medical Purposes Regulations, the predecessor to the current Access to Cannabis for Medical Purposes Regulations. It was the sole supplier to Health Canada under the former medical cannabis system for 13 years, and has been producing safe and consistent medical cannabis for thousands of Canadian patients, with no incident of product diversion or recalls.
For more information, please visit our websites: www.cannimed.ca (patients) and www.cannimedtherapeutics.com (investors).
